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Household dairy demand by income groups in an urban Chinese province: A multistage budgeting approach

Beibei Wu, Xudong Shang and Yongfu Chen

Agribusiness, 2021, vol. 37, issue 3, 629-649

Abstract: Price and income elasticities are estimated for six food categories and different types of dairy across low‐, medium‐, and high‐income groups using 7426 urban households in Guangdong province from 2007 to 2009. Results from the estimation of a multistage budgeting approach to deal with zero expenditure show that demand for milk and dairy items among low‐income groups is more sensitive to income and price fluctuations compared to medium‐ and high‐income families. Therefore, a program of large income or price subsidies for dairy items may be an effective policy solution to improve the nutrition of the poor households. [EconLit citations: P46, Q18, O12].

Date: 2021
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